Weekly Commodity Podcast by Ravindra Rao | 16th Oct 2023

Highlights of this week's Commodity Podcast:• Financial markets experienced a roller coaster ride over the past week, with several factors influencing investor sentiment.• The escalation of the conflict between Israel and Hamas had a significant impact on market dynamics, causing fluctuations in various asset classes.• Volatility heightened, particularly in the latter part of the week, when an unexpected increase in the US Consumer Price Index (CPI) raised concerns about the Federal Reserve's interest rate policies.• The US dollar experienced a pullback from its recent ten-month high of 107.35, but it managed to rebound as a result of better-than-expected economic data and the risk-off sentiment prevailing in the global markets.• COMEX Gold prices made significant gains, marking a weekly increase of approximately 3%. This surge, the most substantial since March, was driven by safe-haven buying amid the worsening conflict between Israel and Hamas. Silver also benefited from these safe-haven flows, with its prices rising by around 5%.• WTI Crude oil experienced a weekly closure with more than a 5% gain, largely attributed to Israel's military directive to the United Nations, calling for the evacuation of 1.1 million residents in North Gaza within a tight 24-hour timeframe.• In contrast, LME base metals extended their recent declines, influenced by a combination of factors.• Looking ahead to the upcoming week, financial markets will closely watch a series of speeches by Federal Reserve officials, with particular attention on the remarks of Fed Chair Jerome Powell. In addition, the release of US Retail Sales and Industrial Production data will provide insights into the domestic economic landscape.• Considering the ongoing geopolitical tensions in the Middle East and the diminishing prospects of another Federal Reserve rate hike, the prices of precious metals are expected to remain well-supported in the short term, driven by safe-haven buying• A similar dynamic could be observed in the case of Crude oil, which might experience a swift surge if the Middle East conflict escalates.• Nevertheless, market participants should exercise caution, as the current premiums associated with precious metals and crude oil are vulnerable to erosion in the event of a resolution or de-escalation in geopolitical tensions.Find out in our commodity outlook and trading strategy for Gold, Silver, Crude Oil, and base metals.#commoditymarkets #commodities #commoditytrading #stockmarket #kotaksecurities #technicalanalysis #podcast